Yes, it's a system called leasehold which has its roots in medieval feudalism. Essentially, a property owner owns the building and a long-term (usually either 99 or 990 years) lease on the ground it sits on.
Everyone recognises that it's absurd, and there've been attempts to fix it for over a century. They've already gone in Scotland, and the previous government finally passed legislation that would allow new leaseholds to be banned in England and Wales too (although it hasn't yet gone into effect). The current government has introduced a bill which will eventually bring the system to an end altogether.
As you might expect, there's huge opposition to these reforms from vested interests who are using every trick in the book to delay them. Getting rid of the hereditary peers from the House of Lords can only improve matters.
